The Ricardo debates: Hollander and Garegnani on natural price and output determination.

Hollander and Garegnami have debated the appropriate interpretation of Ricardo since 1973, without substantive agreement. On at least one issue - the interdependence of prices and output levels - the debate has stalled because textual exegesis cannot solve a logical problem. This paper demonstrates thai such interdependence exists unless one makes one of two restrictive (and un-Ricardian) assumptions: either output levels must be insensitive to wage rate changes, or ail industries must be subject to constant costs. [ABSTRACT FROM AUTHOR]